CRM Practices in Retail Industry

Presented By:-Aditya SharmaAmeya KarveAnkur AhirKaustubh ZinzuwadiaMaulik BuddhdevYaseer Khan

Agenda

• CRM• Cloud• Tesco ( Pre & Post CRM )• Reliance ( Pre & Post CRM )• Difference• Comparison • Future Trends

What is CRM?

• Information industry

• Methodologies, software & internet capabilities.

• Manage customer relationship.

• Organized and efficient manner.

Advantages of CRM

• Increase relationships with clients• Increase of sales• Reduction of sales cycle• Better communication channels• Create detailed profile• New selling opportunities• Provides better customer service

CLOUD ARCHITECTURE

• Software as a Service

• Platform as a Service

• Infrastructure as a Service    

Shift in Data storage

• Physical storage devices

• Cloud storage

TESCOTESCO

Background Note• The first store was opened in 1929 in Burnt Oak,

Edgware.• By 1930, around 100 stores were operating under the

Tesco label.• In 1948, the first self-service Tesco store was opened

in St Albans.• Gradually Tesco grew over 400 stores.• In 1960, Tesco began selling clothing, household

goods, fresh foods and groceries.• In 1974, Tesco began operating petrol pumps.

Continue…

• In 2001, Tesco acquired a 53% stake in Dunnhumby.

• In 2001, a host of new ranges of food products were launched.

• In May 2002 Launched 1st store in malaysia.• By mid 2003, Company was operating 2291

stores around the world.

Tesco - Pre CRM

• Tesco mass-customized the magazines by sending it to their customers.

• Every magazine had a unique combination of articles, advertisements related to its offerings and third party advertisements.

• Promotional coupons were distributed though this magazines.

Adoption of Strategies• In 1979, company successfully launched a price cutting

campaign named “ Checkout at Tesco”.

• In 1985, Tesco Launched the “ Healthy Eating” initiative which aimed at conveying the nutritional value of the company to the customers.

• In 1990, Tesco came with two new formats stores, Tesco Metro: To serve local community of region,

Tesco Express: Combination of petrol pump & convenience

store.

Reason for adopting CRM

• Inappropriate management• Insufficient customer data• Low level of customer satisfaction• Simplify inventory management• Advance reporting• Strengthen workforce management

CRM Software at Tesco

• Software Vendor:-RightNow• Software Name:-Tesco Direct• RightNow was individual indentity when it was

purchased by Tesco.• On December,2011 RightNow was overtaken

by Oracle.• Tesco Direct is the software which was

customized only for Tesco.• Price-90,000 £

TESCO CRM IMPLEMENTATION

Tesco-Post CRM• 1993-94 - Tesco launched the “First Class Service”.• 1994 - Company launched the “One on Front” scheme to

reduce the time of customers at check-out counters.• Tesco store personnel ensure that if there was more than one

person at any counter will lead to open for the person second in line.

• 1994 - Tesco began tied up with Dunnhumby.• 1995 - Tesco launched the Clubcard Loyalty scheme.• In this way Company started collecting the database of

customers like name, add, dob, e-mail etc.• 2000 - Company tied up with a Safeway Inc to launch an

online grocery shopping services

• With the help of data mining they analyzed the data and classified the customers into four broad categories:1) Premium2) Standard3) Potential4) Uncommitted.

• Tesco began giving many special privileges, such as Valet parking and personal attention from store managers to customers.• With www.tesco.com company emphasized on E-commerce.• Special cards were created for mothers.• Special attention given to expectant mothers in the form of personal shopping assistants.

• Sales have increased by 52% and still growing at a rate higher than the industry average within 5 years.• Floor space increased by 150%.• In the online space, tesco.com boasts 500,000 transactions weekly, totaling nearly two billion pounds in sales each year.• RightNow will also provide customers and in-store customer service employees with the opportunity to self-serve via Tesco Direct.• RightNow will support Tesco Tech Support’s customer care goal by giving them a single view of its customers enabling them to understand exactly why their customers contact them, helping them to respond accordingly.

• It will also empower agents and employees to respond to queries consistently and help customers to find answers to their questions via the web.

• “SaaS is the simplest and safest way to store the knowledge.• Clubcard holders receive one point for every £1 (1 point for every

£1 ) they spend.• Holders can also get extra points on special offers and receive one

"Green Clubcard Point" for every carrier bag they re-use as part of Tesco's green initiative.

• These can be used to obtain discounted day trips, magazines, hotel breaks, restaurant tokens and other offers.

• Example- Monarch Airlines scheduled flights

• 2009-As part of the Clubcard 2 launch (2 points per £1).

• 2009/10-Increasing the number of active cardholders from 14 million to 15 million in the market.

• 2014-Tesco launched a new money saving offer for fuel. For every £50 spent in Tesco Stores or Tesco.com, customers receive 2points and can be redeemable as 2 points gives 1litre free.

• Tesco have recently launched both an iPhone, BlackBerry, Android (operating system) and a Nokia Ovi applications so points can be collected by presenting a barcode on the handset instead manual efforts.

Tesco used the info.Tesco used the information generated by the Clubcards in following ways:

• Pricing• Merchandising• Promotions• Customer Service• Customer Acquisition• Market Research• Customer Communication.

CRM

Reliance RetailReliance Industries Ltd.

"Growth has no limit at Reliance. I keep revising my

vision.Only when you can

dream it, you can do it."

Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002

Different Retail sectors in Reliance

• Reliance Industries Limited• Reliance Fresh• Reliance Trends• Reliance Mart• Reliance Petroleum• Reliance Jewel

Pre CRM at Reliance• Personal contact numbers

• Policy less followed in small towns

• Common policy for Reliance Fresh and Reliance Mart

• Delay in processing of membership cards

• Long queues at billing counters

Measures taken

Inform through SMS Regional policy adopted

Feedback callingMore new technologies adopted

CRM Software at Reliance• Software Vendor:- SAP• Software Name:- MySap, SAP R/3• Software was purchased in 2002 at the cost of

60 lakhs.

• Note – CRM Software for Reliance Communication and Reliance Finances – Clarify eFront Office (Amdocs Company).

SAP Video

SAP in Reliance

• MySap software record and store information about customers, various customer interactions, their problems etc which can be accessed by employees in different departments of the company.

• These information are used by the organization to make future plans that can satisfy the customer on a better way and retaining them for a longer period.

VARIOUS ASPECTSCRM includes many aspects which relate directly toone another:

• Front office operations — Direct interaction with customers, e.g. face to face meetings, phone calls, e-mail, online services etc.

• Back office operations — Operations that ultimately affect the activities of the front office (e.g., billing, maintenance, planning, marketing, advertising, finance, manufacturing etc.)

CRM Policy Of Reliance The customers also get the opportunity of availing four

different kinds of insurance on the payment of a nominal fee.

For example a customer can get an accidental death insurance offers six lakhs on the payment of Rs. 400 only. Other forms of insurances are disability, hospitalization and home insurances.

The members of reliance one get the opportunity of taking part and winning prizes by the way of lucky draws on regular intervals.

CRM Strategy

CRM policy of reliance can be divided into four broad category in every sector:

1) Customer Loyalty2) Customer Retention 3) Customer Communication4) Customer Gratification

Customer LoyaltyVarious measures taken for attraction to drive loyalty:

1) Opportunity of taking part and winning the prizes by the way of lucky draws on regular intervals.2) The point system which provides one point for every100 Rs purchase.

Customer Retention

• This is practiced at the zonal level.• Discounts which prove to be helpful in

generating revenues are repeated in future again.

• Complaint management and grievance handling system at customer service desk which increases the satisfaction.

Customer Communication

• Regular offers are communicated through e-mails and sms to Reliance One members.

• They try and create database while organizing of various special events in the store.

• Festive cards and other occasional cards are regularly sent to Reliance One customers.

• Gift vouchers and discount coupons gives the feeling of “care”.

Customer Gratification

• Trained Salesperson• Gifts and discount coupons• Thank you with a smile

CRM Creative Concepts

Reliance One Membership

• Customer will get 1% point of his purchase amount

• Free 50,000 Rs “Accidental Death Insurance”

• Earning Reliance One points on your all purchase at Reliance retail stores

• Bonus Reliance One points even on everyday essentials

• Invites to exclusive events

CRM Direct Mail Triggers

Home DeliveryInstallation

Home Demo

RepairReplace Service

Exchange

Complaint

Purchase

PurchaseIntent

Customized NewOffers & Events Launches

Resolve

SpecialOccasion

Home Solution Home mapping Apology Offers Win-back Wish CardsProduct Catalog Getting-to-Know Satisfaction Feedback Satisfaction OffersOffers Cross-Sell Feedback

Service SolutionsFeedback

CRM Reward Points : Earn RationaleOption 1

for every

Rs100spend

you get

=1point

=worth

1rupee

Option 2

Recommended

for every you get

Rs100=1spend point

worth= Xrupee

Option 3for varying you get worth

spend X = 1=point

Xrupee

CRM MySAPCRM

Supports customer-related processes from end to end- all customer-related tasks across departments integrating invoicing, shipping, etc.

Provides customer intelligence across the enterprise- customer data for faster and better decision making

Delivers immediate value- Enables you to address strategic priorities

CRM MySAPCRM Identifying biz target gaps

CRM MySAPCRM Final campaign effectiveness = 80%

Difference between TESCO AND RELIANCE

TESCO RELIANCEClubCard RelianceOne

Single day Delivery Irregularity in delivery

Online purchase with dedicated apps Online purchase but no dedicated apps

Hosted Servers No such servers

Valet parking for Club Card holders Generalized FCFS based.

Comparison• Lack of adoption of CRM software by

employees.• Poor communication• Advance reporting• Work force management• Inventory management• Customer Centric view

Future Trends in CRM

• Products in accordance with customer’s mindset

• More action than transaction• Smart shopping• International players• Social CRM

THANK YOU